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The Institute of Chartered Shipbrokers, London Branch

The Institute of Chartered Shipbrokers, London Branch. 25 October 2006 “ The POSEIDON Challenge ” Peter M. Swift Managing Director, INTERTANKO. International Association of Independent Tanker Owners.

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The Institute of Chartered Shipbrokers, London Branch

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  1. The Institute of Chartered Shipbrokers,London Branch 25 October 2006 “The POSEIDON Challenge” Peter M. Swift Managing Director, INTERTANKO

  2. International Association of Independent Tanker Owners Represents responsible oil and chemical tanker owners worldwide, promoting their interests and providing members with technical, operational, legal, documentary and other support services, information and advice. 250 + members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with strict membership criteria 300 + associate members in oil and chemical tanker related businesses 15 Committees - 4 Regional Panels Representative Offices in Europe, US and Asia

  3. Mission and Vision MISSION “Provide leadership to the Tanker Industry in serving the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.” VISION FOR THE TANKER INDUSTRY “A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.”

  4. One of the Association’s primary goals: Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of: Zero fatalities Zero pollution Zero detentions

  5. Total Losses by Number(Ships over 100gt) 300 250 200 150 Number of Ships 100 50 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 A “loss” refers to ships damaged beyond economic repair Source: Lloyd’s Register Fairplay

  6. Development of Oil Spills Source: ITOPF. Number of spills above 700 tonnes.

  7. Pollution from tankersTonnes / billion tonne mile Tanker accidental pollution rate tonnes spilt per bn tonne miles trade 35 30 25 20 15 10 5 0 1971-75 1975-80 1981-75 1986-90 1991-95 1996-00 2001-05 Source: ITOPF spills, Fearnleys: Tonne miles

  8. Reported tanker incidents(1978 – 2005) 1000 800 600 400 200 0 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 War Grounding Hull & Machinery Collision/Contact Fire/Explosion Other

  9. Safely and Reliably

  10. Cost Effectively Oil price and tanker freight rate 1976-2006 Freight rate and oil price (USD/bbl) deflated by the US consumer price indexOil price 2006 is approx price end April and not average price for the year.

  11. Shipping Industry Performance • A record of “continuous improvement” • But the industry is not complacent ! The reality is that: Irrespective of today’s performance expectations will be greater tomorrow !

  12. Shipping Industry : A record of“continuous improvement” Q: How has this been achieved ? A: A combination of Regulation and Self-Regulation Although difficult to prove !

  13. “Good” Regulation ANDIndustry Best Practice

  14. Industry works to encourage“Effective” Regulation • Developed at the global level, wherever appropriate (consistent with existing law) • Fit for purpose (provides solutions) • Properly considered (stakeholders involved) • Impact(s) fully assessed (economic and social) • If adopted, implemented uniformly and promptly Engaging with legislators, regulators, politicians and the media

  15. Industry works to develop and promote “Self Regulation” • Adopting “best practices” • Producing industry guidelines • Developing programmes, procedures, etc. - Design, Shipbuilding, Operations, Training, Inspections, Investigations and more… Engaging with partners, legislators, regulators, politicians, media and public

  16. The Poseidon Challenge

  17. BUILDERS DESIGN TRAINING EQUIIP SUP EDUCATION CLASS SHIPBREAKERS CARGO INCIDENT MGT FINANCIERS SALVORS MANAGERS REPAIRERS OWNER OPERATOR CARGO AGENTS BROKERS CREW P&I LABOUR HULL INSR TUGS FLAG STATE PILOTS COASTAL STATE BUNKERERS WATERWAYS TERMINALS PORT AGENCIES GOV STATES LOCAL GOV STAKEHOLDERS IMO

  18. Poseidon Challenge- commitment to continuous improvement- commitment to working with all partners

  19. “If you think safety training and education are expensive then try an accident. Not just training of seafarers but shore staff too. ICS education and training provider with, in 2006, 1400 candidates sitting 3700 papers in 78 examination centres worldwide. Strengthens links in chain of responsibility by giving the industry better-educated staff, through a commitment to staff development; a safer shipping environment with less contractual risk in the system; demonstration of self-regulation with common worldwide standard of professional competence and conduct. We give you our word that the ICS accepts the challenge and fully supports Poseidon Challenge. We shall promote this initiative whenever and wherever we can.” COMMITMENTS: - Committed to raising professional standards. - Challenge to those present to submit minimum of 5 staff for ICS foundation diploma education programme the in next 12 months. - The ICS Education Trustees have agreed to a new prize of £1000 which will be awarded to the candidate who in the Examination Board’s opinion has been the most outstanding student of the year. This prize is being launched as a Poseidon initiative. The Poseidon Challenge- what can we do ?

  20. The Poseidon Challenge- what can we do ?

  21. The Poseidon Challenge- what can we do ? Final thoughts: • Do we tolerate standards below the accepted “norms” ? • Do we make the most effective use of the information available ? EQUASIS, Q88, other ? Is there a Role for the Institute in developing / improving access to data

  22. EQUASIS Information System The principles behind Equasis: • A tool aimed at reducing substandard shipping (limited to safety-related information). • An international database covering the whole world fleet. • Involvement of ALL players involved in the maritime industry. • A tool to be used for the better selection of ships • The promotion of the exchange of unbiased information and transparency in maritime transport (- to be better informed about the performance of ships and maritime organisations).

  23. Learning from Tanker incidents: 2005OR NOT ? Total 161 Hull & Machinery 29 engine, 3 hull Miscellaneous Fire & Explosions. Grounding Collision* *includes contact

  24. The Poseidon Challenge- what can we do ? And a final final thought: In order to trade a ship, we need: • A licence from the Flag State • A licence from the Classification Society • To be acceptable to the insurers • And a charterer Where does the broker fit in this quality challenge ?

  25. THANK YOU www.intertanko.com www.shippingfacts.com www.themaritimefoundation.com

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